Cost of freight - Freight is includible only if (a) Freight is not shown separately in invoice or (b) Contract is for sale FOR destination. This aspect has been discussed in following paragraph, under 'Exclusions from Sale Price'.

Freight and delivery charges incidental to sale only are deductible - Freight and delivery charges allowable as deduction are only those which are incidental to sale. Thus, in case of sale of goods from depot, transport charges from factory to the depot cannot be allowed as deduction - Dyer Meakin Breweries Ltd. v. State of Kerala - (1970) 26 STC 248 (SC).

Freight and transport charges for delivery of goods - Generally, CST is payable only on ex-works price and no CST is payable on freight and transport charges. However, CST is payable on freight charges if (a) Freight charges are not shown separately in invoice or (b) Contract is for FOR destination